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Hello and welcome to Better Offline, live and direct coming at you from the middle of nowhere,

the center of everywhere, and I'm your host, Ed Zittron.

Feels like forever since I talk directly to you, my dear listeners, so I'll get right to him.

And as a reminder, I'll be including links to everything I'm talking about in the episode notes. And if you're just catching up, all you really need to know here is that OpenAI makes

large language models like GPT and of course the product chat GPT, Anthropic makes Claude, a similar

product, and that generative AI products have yet to really prove a use case that justifies them losing money on every single transaction.

Let's begin.

August 2nd, 2024 was Black Friday for the AI boom, as a week of rough earnings from Big Tech led to what felt like the entire media industry asking one question.

Is the AI bubble popping? And that's the question I'm

going to try and answer for you today, and in the next episode two. The Guardian sought to answer

why the big seven tech companies had been hit with AI boomed doubts. CNN asked, has the AI

bubble burst? And the Atlantic suggested several months too late that the generative AI revolution may indeed be a bubble.

The Financial Times reported hedge fund Elliott Management told investors that NVIDIA was a bubble,

and Bloomberg reported that big tech had failed to convince Wall Street that AI was paying off.

It's all part of a growing trend, where people are suddenly realizing what I've been saying for months,

that this unprofitable, energy-hungry technology that creates mediocre outputs is not actually the future.

It's just another cloud do-hickie, yeah.

Not a great way of putting it, I realize, but this is my nice way of saying

generative AI isn't completely useless, but the large language models, they kind of are based on the

...